Vivendi Games and Activision Merger

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The day was December 2, 2007 and every paper ran the story of this unexpected merger. The reason for that is mostly because this deal sets the foundation for a new company called Activision Blizzard, which has the potential to shake and redefine the gaming industry as well as crush potential competitors, like Electronic Arts.

The goal that defined the Vivendi/Activision fusion was “to create Activision Blizzard — the world’s largest, most profitable pure-play video game publisher.” The total transaction was valued at $18.9 billion. This newly formed company ought to have around $3.8 billion in combined revenue for 2007 and moreover, the highest operating margins of third party game publishers.

In the pages of this article we’re going to cover everything that you should know about this gaming-related merger. First, we will give a brief overview of the two companies that took part in this coalition. And as soon as we’re finished we will move on and discuss business—the deal per se.

Furthermore, we promise a reality check so that you can drift back from your oh-so-enjoyable daydream provoked by reading about “billions of dollars.” Right then we will tackle expectations for the future and what we should anticipate from the newly formed Activision Blizzard. We won’t forget about analyzing potential competitors and how this company outraces Electronic Arts, at least for now.

All of this being said, we invite you to join us on a ride to figure out how this mega-fusion affects the gaming industry.